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Mom was hospitalized with sepsis from a UTI, and is now in rehab. She desperately wants to go home, but my sister would be unable to lift her to help her up (she’s about 275 pounds). We are applying for Medicaid, and need to spend down her modest savings account. We are also planning on putting her in a 24/7 nursing care facility because she can’t (won’t) walk, get up, or take care of her bathroom needs herself. She also has dementia and forgets things regularly, but is also surprisingly aware at times. I’m not sure if we should tell her what we are doing with her money (we have a Power of Attorney), and that she’ll be moving soon to a nursing home. I also don’t know how to tell her about it. What is the right or best thing to do?

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Tell her "mom you have to get a little stronger. You have to work with the therapists here so you can walk again". You don't have to tell her she will be there permanently, just tell her she needs to keep working on getting stronger so she can be able to go home.
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I would tell her nothing. It will go in one ear and out the other. Hopefully the Rehab has a LTC wing. Its just a matter of Mom moving from one wing to another. When asked when she will go home, tell a little fib and say "when the doctor thinks its right"

If the LTC is not in same building, we told Mom she was getting her own apt and would be meeting new people.
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